Under what agreement does Fly To Fit have the right to sublicense its trademarks?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
Tina Murphy, our Owner, owns the trademarks described in this Item. Under an Intercompany License Agreement between us and Tina Murphy, we have been granted the exclusive right to sublicense the trademarks to franchisees throughout the United States. The agreement is of perpetual duration. It may be modified only by mutual consent of the parties. It may be canceled by our affiliate only if (1) we materially misuse the trademarks and fail to correct the misuse, or (2) we discontinue commercial use of the trademarks for a continuous period of more than one year. The Intercompany License Agreement specifies that if it is ever terminated, your franchise rights will remain unaffected.
Source: Item 13 — TRADEMARKS (FDD pages 31–33)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the right to sublicense its trademarks is granted under an Intercompany License Agreement. This agreement is between Fly To Fit and Tina Murphy, the Owner of the trademarks. Under this agreement, Fly To Fit has the exclusive right to sublicense the trademarks to franchisees throughout the United States.
The Intercompany License Agreement has a perpetual duration, meaning it continues indefinitely unless specific conditions for cancellation are met. Modification of the agreement requires mutual consent from both Fly To Fit and Tina Murphy. The agreement can be canceled by Fly To Fit's affiliate if Fly To Fit materially misuses the trademarks and fails to correct the misuse, or if Fly To Fit discontinues commercial use of the trademarks for a continuous period of more than one year.
Importantly, the Intercompany License Agreement includes a provision to protect franchisees. If the agreement is ever terminated, the franchise rights of existing Fly To Fit franchisees will remain unaffected. This provides a level of security for franchisees, ensuring their right to use the trademarks continues even if the licensing agreement between Fly To Fit and its owner is terminated. This is a beneficial term for franchisees as it protects their investment and business operations from potential disputes between Fly To Fit and its owner.